Operating profit

Profit generated by a company's operations before interest payments and tax is called operating profit.

Operating profit is closely related to EBIT, and is usually the same.

There may be a difference between EBIT and operating profit. It is almost always small. It comes from the exclusion from operating profit of certain profits or losses that are not part of the operations of a business - such as profits on the sale of businesses.

Although the definition of trading profit can vary it is usually very similar to operating profit or adjusted operating profit.

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